US President Donald Trump’s move to slap a 10 per cent tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.

The sweeping penalties announced against the serene backdrop of the White House Rose Garden on Wednesday immediately unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of an era of trade liberalisation that has shaped the global order for decades.

Now facing 54pc tariffs on exports to the US, the world’s No. 2 economy China vowed countermeasures, as did the European Union — Washington’s friends and foes united in criticism of measures they fear will deal a devastating blow to global trade.

What we know so far:

The US imposed 29pc reciprocal tariffs on Pakistan, which charges the US 58pc, with analysts seeing immediate hurdles but also long-term opportunities for the country.

As Asia digested the news on Thursday, stock markets in Beijing and Tokyo sank to multi-month lows, with US and European stock futures also pointing to sharp losses as investors scrambled to the safety of bonds and gold.

The base 10pc tariffs go into effect on April 5 and the higher reciprocal rates on April 9.

China, faced with a fresh 34pc tariff on top of the 20pc Trump previously imposed, urged the US to immediately cancel its latest levies and vowed countermeasures.

The US slapped a 26pc tariff on imports from India but exempted pharmaceutical exports, bringing cheer to India’s pharma industry.

US Treasury chief Scott Bessent urged other nations not to retaliate, moves that could lead to dramatically higher prices for consumers on everything from bicycles to wine. “If you retaliate, that’s how we get escalation,” Bessent told CNN.

Close US allies were not spared Trump’s ire, including the European Union, which faces a 20pc tariff, and Japan, which is targeted for a 24pc rate. Tokyo said it was leaving all options to respond to the “extremely regrettable” duties.

The “reciprocal” tariffs, Trump said, were a response to duties and other non-tariff barriers put on US goods. He argued that the new levies will boost manufacturing jobs at home.

“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said.

Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars.

Even some fellow Republicans have expressed concern about Trump’s aggressive trade policy.

Within hours of Wednesday’s announcement, the Senate voted 51-48 to approve legislation that would terminate Trump’s Canadian tariffs, with a handful of Republicans breaking with the president. Passage in the Republican-controlled US House of Representatives, however, was seen as unlikely.

Trump’s top economist, Stephen Miran, told Fox Business on Wednesday that the tariffs would work out well for the US in the long run, even if they cause some initial disruption.

“Are there going to be short-term bumps as a result? Absolutely,” Miran, the chairman of Trump’s Council of Economic Advisors, told the network’s ‘Kudlow’ programme.

The effective US import tax rate has shot to 22pc under Trump from just 2.5pc in 2024, according to the head of US research at Fitch Ratings.

“That rate was last seen around 1910,” Olu Sonola said in a statement. “This is a game-changer, not only for the US economy but for the global economy. Many countries will likely end up in a recession. You can throw most forecasts out the door if this tariff rate stays on for an extended period of time.”

The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the United States”, according to a

© Dawn Business